The Psychology of Money


The Psychology of Money: Timeless lessons on wealth, greed, and happiness

Doing well with money isn’t necessarily about what you know. It’s about how you behave. And behaviour is hard to teach, even to really smart people. Money-investing, personal finance, and business decisions-is are typically taught as a math-based field, where data and formulas tell us exactly what to do. But in the real world, people don’t make financial decisions on a spreadsheet. They make them at the dinner table, or in a meeting room, where personal history, your own unique view of the world, ego, pride, marketing, and odd incentives are scrambled together. In The Psychology of Money, award-winning author Morgan Housel shares 19 short stories exploring the strange ways people think about money and teaches you how to make better sense of one of life’s most important topics.



The Psychology of Money

It’s not a book about what to do with your money. It’s a book about what happens in your head when you try to do things with money.

I started writing about investing 13 years ago. A big part of my early writing career was centered around the 2008 financial crisis. I wanted to know: Why did it happen? What were people thinking? Why did they do the things they did? Can it happen again? Did people learn from their mistakes?

There was no ah-ha moment, but over time I realized the answers to these questions weren’t in finance textbooks. Economics textbooks could’t make much sense of them either.

But you could find subtle clues in psychology textbooks. And sociology studies. There were plenty of examples in history books. Political theory could explain why policymakers did what they did.

The biggest realization I’ve had about investing is that it is not the study of finance. It’s the study of how people behave with money.

There are people with no financial training or background who do well with money. There are also partners at Goldman Sachs with PhDs in economics who go bankrupt. That kind of gap between knowledge and results does not exist in any other field. And the mere fact that it’s possible in finance shows that doing well with money isn’t necessarily about what you know. It’s about how you behave.

The neat thing about this is that behavior is the center of many different fields. A lot of important things in life fall under an umbrella of, “What is your relationship with greed and fear? Are you able to take a long-term mindset? How gullible are you? Who do you trust, and where do you get your information?”

That’s all investing is.

This book is 19 chapters. None are long, because I don’t want to waste your time. I just want to explain the 19 most important quirks about how people think about money, often through the lens of topics that have nothing to do with money, but everything to do with how people behave.

Hope you enjoy it.


Product description


"Morgan Housel is one of the brightest new lights among financial writers. He is accessible to everyone wanting to learn more about the psychology of money. I highly recommend this book." -- James P. O'Shaughnessy, Author, What Works on Wall Street "Housel's observations often hit the daily double: they say things that haven't been said before, and they make sense." -- Howard Marks, Director and Co-Chairman, Oaktree Capital & Author, The Most Important Thing and Mastering the Market Cycle "Few people write about finance with the graceful clarity of Morgan Housel. The Psychology of Money is an essential read for anyone who wants to make wiser decisions or live a richer life." -- Daniel H. Pink, #1 New York Times Bestselling Author of When, To Sell Is Human, and Drive "The Psychology of Money is bursting with interesting ideas and practical takeaways. Quite simply, it is essential reading for anyone interested in being better with money. Everyone should own a copy." -- James Clear, Author, million-copy bestseller, Atomic Habits "Morgan Housel is that rare writer who can translate complex concepts into gripping, easy-to-digest narrative. The Psychology of Money is a fast-paced, engaging read that will leave you with both the knowledge to understand why we make bad financial decisions and the tools to make better ones." -- Annie Duke, Author, Thinking in Bets

About the Author

Morgan Housel is a partner at The Collaborative Fund and a former columnist at The Motley Fool and The Wall Street Journal. He is a two-time winner of the Best in Business Award from the Society of American Business Editors and Writers, winner of the New York Times Sidney Award, and a two-time finalist for the Gerald Loeb Award for Distinguished Business and Financial Journalism.

Product details

  • Publisher ‏ : ‎ Harriman House Publishing (8 September 2020)
  • Language ‏ : ‎ English
  • Paperback ‏ : ‎ 256 pages
  • ISBN-10 ‏ : ‎ 0857197681
  • ISBN-13 ‏ : ‎ 978-0857197689
  • Dimensions ‏ : ‎ 15.34 x 1.8 x 21.36 cm


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